Pfizer Move to Result in 186 Layoffs in Vonore

Dec. 01--Pharmaceutical giant Pfizer is outsourcing its logistics
and distribution operations, which will result in about 186 layoffs
when the company turns over its Vonore distribution plant to a
third-part logistics company.

Pfizer announced Tuesday that its Global Manufacturing division
is restructuring distribution operations and plans to leave the
Monroe County plant that serves the United States and other
countries.

As Pfizer exits the distribution business, affected employees
will be eligible for severance and other benefits. Pfizer spokesman
Rick Chambers said there will be employment opportunities for the
employees with Exel, the third-party logistics service provider,
which will hire a work force to operate the plant.

The layoffs are the result of an agreement Pfizer is negotiating
with Exel, based in Ohio, and with Deutsche Post DHL, a global
logistics group, to contract out distribution of drug and health
care products, and to reduce excess capacity.

In the restructuring, the Vonore distribution center will be
taken over by Exel, which will distribute Pfizer products from the
640,000-square-foot plant in the Tellico West Industrial Park.

"The restructuring of our U.S. logistics network is critical to
our efforts to remain competitive in the future so that we can
continue to meet customer needs," said Philip Rose, an executive
with Pfizer Global Manufacturing's Americas Logistics & Supply
Operations. "(Tuesday's) announcement is very difficult to make,
however, because of its impact on our colleagues. But we are
actively working on strategies that we hope will minimize
disruption both to our employees who work in Vonore to the local
community."

Chambers said the transition is expected to be complete next
summer, with Exel taking over the building and continuing a work
force to distribute Pfizer products. He said affected employees can
interview for Exel positions.

"With the discussions we've had with Exel, we believe Exel will
hire as many of the current employees as they can," Chambers
said.

Ron Hammontree, executive director of the Tellico Reservoir
Development Agency, which manages Tellico West Industrial Park,
said the Pfizer move isn't unexpected.

Wyeth operated the plant until its 2009 acquisition by
Pfizer.

Hammontree said more companies are outsourcing their
logistics/distribution operations.

"This is not an unusual situation for companies these days. The
Conagra facility at Tellico West is operated by TLC. It's a very
common way for companies to operate their logistics programs,"
Hammontree said.